September 24, 2021 7:23 pm

Hong Kong Intangibles


There are several benefits to company formation in Hong Kong. There are no capital or tax payments to be paid to the jurisdiction where the company registration is done. If you want to establish a business in Hong Kong, you don’t even have to pay any taxes on it. Company formation in Hong Kong provides you with a lot of benefits.

Benefit for International Trade Hong Kong incorporation. One of the most significant advantages of company formation in Hong Kong is that you can enjoy an optimal offshore private company limited liability with exemption from paying income tax to the jurisdiction where the company registration is done. Many international companies have their registered offices in Hong Kong, and as such, there are many of these companies. Therefore, the tax rate applicable to them is much lower than the rate applicable to domestic companies.

Company Registration with the Chinese Taxation Law You will enjoy the benefit of having a double taxation treatment when you incorporate it in Hong Kong. Because companies are not considered legal entities in China, they are not subjected to the same corporate tax treatment that corporations are in mainland China. On the other hand, companies incorporated in Hong Kong must pay the appropriate personal income tax in China, depending on their business activities. As a result of this double taxation arrangement, many international businesses choose to incorporate it in Hong Kong. Besides, the tax system in Hong Kong is far more stable than the taxation system in mainland China. The lack of corporate tax in countries like Hong Kong allows them to run their business activities without worrying about paying high corporate tax.

Foreign Investors Companies can invest more capital in Hong Kong if they establish a company through a Hong Kong incorporation company. It gives them more significant opportunities to expand their business activities in the area without worrying about paying the appropriate corporate tax in China. On the other hand, an individual investor can also incorporate a company through a local company registration office. Still, he will have to pay the appropriate corporate tax in Hong Kong. The advantage of incorporating a company through a local firm is that it makes the company’s official documentation as official as those of any foreign country.

Limited Liability Company (LLC) An LLC is a perfect choice for individuals or local liability firms that do not want to give up their company’s ownership even if they get into a financial crisis. An LLC is a separate entity from its owners and can function as a partnership. Unlike a partnership, it does not have to provide shares of its members’ assets to ensure profit. By choosing this type of incorporation, a limited liability company owner will not have to pay corporate taxes on his income gained from his company’s operation.

Registration Of Business Name A new company limited by registering a name is more comfortable to set up than most others. All that is required is to fill out the registration form and pay the administrative fees. After doing so, the company’s name becomes active and can now seek to trade in the stock markets. The advantage of this type of registration is that all shareholders have the same identity. It provides comfortable identity protection and works well in Hong Kong.

Sole shareholder, A sole shareholder, has no legal rights; he may be an employee or a partner. As a shareholder, he will have no vote in any meetings of the company. He cannot buy, sell, or transfer any shares. If a sole proprietor wants to access the company’s assets, he must become a registered member.

Limited partnership In a limited partnership, one person owns the league, and another is the partner. The same laws apply as that of a sole proprietorship. However, there is no voting or holding of meetings by the partners. The limited partnership is a vehicle for business succession. The profits of a limited partnership are limited to the dividends paid by the partners.






Hong Kong incorporation



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